Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Volume 21 Who is the Lord of Ups and Downs Chapter 40 Problems

It should be said that Liyang's economic development achieved some achievements during the time when Pan Xiaoliang and Song Dacheng partnered. However, as Song Dacheng himself said, the rapid development of Liyang's economy in the first two years was largely due to the positive climate of the overall economic situation in the country.

Of course, it is also related to Pan Xiaoliang and Song Dacheng's measures that are suitable for Liyang's development. For example, attracting investment from coastal areas is mainly to undertake some industries that transfer from coastal to inland. The reason is also very simple. The price of coastal labor has risen rapidly, while the energy prices of Liyang's labor in inland are relatively low. Moreover, Liyang is located in Changdong, close to the Yangtze River Delta region, and has certain geographical advantages.

The domestic economic climate is now poor, and the economies in various places have been greatly impacted. Liyang, a city that has not established a strong competitive pillar industry system, is a bit embarrassing. How to deal with it is also a test question to test people.

From the perspective of traditional industries alone, Liyang's mining machinery and engineering machinery industries have certain strength, but Liyang engineering machinery has a big gap compared with XCMG, Xiamen Engineering, Sany and Zoomlion Heavy Industry in the east. This can be seen from the fact that although the scale of Liyang engineering machinery factory has been expanding in recent years, its benefits have declined year by year.

"Wu Xia, Chi Feng, Dacheng, and Liyang's industrial planning is relatively messy. The early construction machinery and related machinery parts industries were mainly second- and third-tier enterprises transferred by the state. Now the military has been transferred to the public and launched into the market. Some enterprises have fallen into decline, and some can still be maintained because they have some of their own technical and basic advantages. But I think this is still a valuable asset for Liyang." Lu Weimin also thought for a long time before finding this entry point: "Dacheng, I remember you mentioned last year that XCMG was considering building a new production base and had visited Liyang Construction Machinery Factory?"

"Well, this is the case, but they want to acquire it. The city feels it is not suitable, so the matter will be ruined." Song Dacheng nodded.

"Why is it not suitable?" Lu Weimin asked back.

Song Dacheng was speechless for a moment. Do you still need to ask? Liyang Construction Machinery Factory is a key enterprise in Liyang City. Although its efficiency is declining, it is still making profits after all. This is to be acquired by XCMG. How to explain it? Then you have to be called a success or a prodigy again. Maybe the hat of state-owned assets will be deducted again. The people will not care whether XCMG is a state-owned asset or a private enterprise.

"Does the city feel that it was acquired by XCMG all at once, and the city has no backbone, and its children are taken away by others. Isn't it safe?" Lu Weimin continued to ask: "But the construction machinery industry is a pattern where the strong take everything and the weak get eaten. The scale of the Liyang Construction Machinery Factory is too small. Although it seems to be profitable now, you have also noticed that since it reached its peak in 2007, its efficiency has been slowly declining. Last year, the decline rate has further accelerated. If the construction machinery industry wants to grow, on the one hand, it must make great investment in technology. No matter whether you acquire a company with a technical foundation and patent, or you develop it yourself, it is all

The second is to mention the scale effect. Without scale, the cost cannot be controlled. When the market is good, you can still maintain it. When the market is bad, you will feel cold. Therefore, I don’t think that it is a good idea for the Liyang Municipal Government to reject XCMG’s acquisition. If XCMG can really build Liyang into its manufacturing base. At the same time, it can bring some related industrial layout to Liyang. I personally think XCMG’s acquisition is a good thing, but XCMG should propose a planning plan for how to build this manufacturing base, as long as it can be fulfilled. The city should not object. Remember that the government is a service provider, not an operator, and that is the business of entrepreneurs.”

Lu Weimin's clear attitude was made clear, allowing Wu Xia and Chi Feng to see the different side of Lu Weimin from ordinary people. Such companies that actively sell profitable enterprises, or even good markets, generally speaking, leaders will not express their support clearly. At most, they will only express some opinions implicitly from the side. It is really rare to express their attitude like Lu Weimin, which is equivalent to not leaving a way out for himself. Once they are opposed or criticized, they will be at risk.

"Governor, our municipal party committee and government also considered XCMG's acquisition plan at the beginning. XCMG's statement on building this manufacturing base is not very clear. Of course, the main factor is that we believe that Liyang Construction Machinery Factory still has prospects and is still making profits, so..." Song Dacheng frowned and explained. He felt that Lu Weimin seemed not optimistic about the current Li Gong.

"Dacheng, I just said that Li Gong's scale is too small and the R&D investment is not high. Of course, this is related to its own strength. At present, the golden development cycle of the construction machinery industry has passed. The next step is to compete for strength. None of the market share and sales revenue of Li Gong's products have entered the top ten in the country, or even the top fifteen is difficult. What does strength come from? My understanding is that it is technical advantages, and it is a long-term technical advantage. Technical advantages also mean that not only must there be solid technical reserves, but also must continue to increase investment in R&D to ensure this advantage. Li Gong does not have this strength now, and the Li Yang Municipal Government cannot use finance to support it.

Supporting Li Gong's investment in this area, so I don't think Li Gong can survive the fierce market competition in the future." Lu Weimin's tone was very calm, as if he was talking about something that had nothing to do with himself. "At present, Li Gong has some things worth seeing in mining machine manufacturing. The domestic coal market has also declined, and the mining machine market has declined. I am afraid that if you want XCMG to acquire it, you will not do it anymore. Even if Li Gong is acquired by XCMG, I think the way out is not on the mining machine, but on railway construction machinery. I learned that XCMG intends to make efforts here. If you can reach a construction base for railway construction machinery with XCMG in this area, I think this may be a way out for Li Gong."

Lu Weimin's very straightforward words made the three Li Yang leaders present silent.

Such a pessimistic prediction was a blow to the three of them, especially Song Dacheng. When XCMG acquired it, Pan Xiaoliang and him voted against it. Of course, this also had the influence of opposition from relevant leaders in the province, but the more important thing is that they are still optimistic about Li Gong. Unexpectedly, Lu Weimin used such a positive tone to assert that the future construction machinery market is not optimistic.

It is also a bit unacceptable for Wu Xia and Chi Feng. What impact will it have on themselves if they sell state-owned enterprises? Will they be labeled as a prodigal son?

Seeing that the three of them were silent, Lu Weimin also knew that his opinion was a blow to the three of them, which was a bit difficult to accept psychologically. However, when one leader cannot act on his own, in Lu Weimin's view, small and medium-sized engineering machinery manufacturing companies like Li Gong, of course there is no big problem when the national economic situation is improving. Once the downward period enters, the problem will soon appear. If XCMG is willing to acquire, invest in transformation, or even build Li Yang into a production base, it is of course a good thing. For the government, as long as the company survives, employment is preserved, and the industry is formed, you are the winner. As for how much XCMG earns in it, it doesn't matter.

"Okay, I am some of my personal opinions. My opinion. You should hire professional market analysts to evaluate and predict the construction machinery market, and then judge the advantages and disadvantages of Li Gong. Finally, let's consider Li Gong's survival issues, what is the function of the government, to ensure good market order, and promote employment. As for the departure and retention of state-owned enterprises in the hands of the government, I personally think it depends on the situation. For municipal governments and even provincial governments, I do not support retention except for special industries, and should be gradually marketized." Lu Weimin said calmly: "Of course, these are some of my personal opinions, which may not be correct, and you don't have to accept them."

As the industry of construction machinery spreads, Lu Weimin also talked about his views on Liyang's industrial planning such as electronics, plastics and food. Lu Weimin's advice to them is that although he faces the challenges of economic downturn, Liyang is the region closest to Changjiang in the Yangtze River and is also the springboard for Changjiang to enter the Yangtze River by land. The gateway for the Yangtze River to enter Changjiang. As labor prices in coastal areas continue to rise, the trend of some industries in coastal areas transferring to inland is becoming more and more obvious. Liyang's conditions have great advantages for these industries in coastal areas. It has a better location advantage than other cities in attracting these industries to transfer these industries. It should seize this opportunity well.

However, Lu Weimin also reminded that many of the industries transferred from coastal areas are foreign trade export-oriented enterprises with small scale, low technical content, and low added value. Li Yang should distinguish them when attracting these internal migration industries, especially pay attention to the employment standards after the company arrives, otherwise there will be many disputes in the future.

At the end of the topic, naturally, Li Yang wants to seek some investment and support in Li Yang in Li Yang, especially in infrastructure construction.

Song Dacheng looked for Lu Weimin when he was mayor last year. Lu Weimin was also the deputy secretary of the provincial party committee at that time. At that time, he solved the traffic bottlenecks in poor counties such as Tianliang on the grounds that he wanted to support poverty alleviation in poor areas. Lu Weimin also promised to promote the solution of these problems. Now that Lu Weimin is the governor, this work is even more obliged.

Because the impoverished areas in Liyang and the impoverished counties in Yishan are connected together, Yishan has also found Lu Weimin to this problem, and Lu Weimin also feels that it should be solved, but this requires further research on specific plans.
Chapter completed!
Prev Index    Favorite Next